Croatia VAT Changes

The Croatian Prime Minister has announced plans to reform the tax system. The main changes are being made to Income Tax, Corporate Tax and VAT with smaller changes in the real estate sales taxes, excise duties, and a number of other tax-related laws. These changes are  being implemented in order to ‘establish a stable, sustainable and predictable tax system’.

With regards to the changes to the VAT system. The standard rate will be reduced from 25% to 24%, but they will also be combining the two current reduced rates of 13% and 5% to a single reduced rate of 12%. These are expected to be implemented on the 1st of January 2018.

Businesses will need to make sure that they are ready for these changes to ensure that they are charging the correct VAT especially if they deal with any reduced rate goods or services.